As the financial year comes to a close, most business owners are focused on budgets, tax planning and year-end reporting. What often gets overlooked is one of the biggest risks facing many businesses today, people and compliance risk. Over the past 12 months we’ve seen significant changes in employment law, increased scrutiny around workplace behaviour, growing psychosocial safety obligations and ongoing Fair Work activity around wages and entitlements. The good news? EOFY is the perfect time to conduct a quick HR health check and address issues before they become expensive problems.
1. Are you paying people correctly?
With annual wage increases, award updates and changing interpretations of entitlements, wage compliance remains one of the biggest risks for employers.
Common issues include
- Incorrect award classifications
- Missed allowances
- Overtime and penalty rate errors
- Annual salary arrangements that no longer meet award requirements
Many underpayment issues are accidental, but Fair Work doesn’t distinguish between intentional and unintentional mistakes.
EOFY Tip – Review your highest-risk roles and salary arrangements before the new financial year begins.
2. Are your contracts and policies up to date?
Employment contracts and workplace policies should evolve as legislation and business needs change. If your contracts or policies haven’t been reviewed in the last two to three years, it may be time for an update.
Key documents to review include
- Employment contracts
- Code of Conduct
- Workplace Behaviour Policy
- Disciplinary and Performance Management Procedures
- Right to Disconnect Policy
EOFY Tip – Outdated documents often create problems when you need them most.
3. Are your managers equipped to manage people?
One of the most common issues we see is managers being promoted because they’re technically strong, but never being taught how to lead people.
This often leads to
- Poor performance being ignored
- Workplace conflict escalating
- Difficult conversations being avoided
- Increased employee turnover
EOFY Tip – Investing in manager capability is often one of the highest-return investments a business can make.
4. Could your business respond to a workplace complaint?
Workplace investigations, bullying complaints and allegations of inappropriate workplace behaviour continue to feature heavily in the media and before workplace regulators.
The real risk often isn’t the complaint itself – it’s how the organisation responds.
EOFY Tip – Ensure your leaders understand how to respond appropriately, maintain confidentiality and follow a fair process.
5. Are you managing psychosocial risks?
Psychosocial hazards are now firmly on the radar of workplace regulators.
Workload pressures, workplace conflict, poor communication and lack of support can all create psychosocial risks that employers are expected to manage.
EOFY Tip – Treat psychosocial risks with the same seriousness as physical safety risks.
Start the new financial year with confidence
EOFY isn’t just about balancing the books. It’s also an opportunity to ensure your people, systems and workplace practices are setting your business up for success. A simple review now can help prevent costly disputes, compliance issues and workplace challenges later.
Need a fresh set of eyes? We helps businesses identify risks, strengthen compliance and build high-performing workplaces through practical, commercial HR support.
If you’d like an EOFY HR Health Check, we’d be happy to help. Find our articles helpful? Remember to follow us on Facebook, Instagram or LinkedIn to keep up to date with our practical tips and information for business owners and managers.